Advanced Search
MyIDEAS: Login to save this paper or follow this series

Declining labor force attachment and downward trends in unemployment and participation

Contents:

Author Info

Abstract

The US labor market witnessed two apparently unrelated secular movements in the last 30 years: a decline in unemployment between the early 1980s and the early 2000s, and a decline in participation since the early 2000s. Using CPS micro data and a stock- flow accounting framework, we show that a substantial, and hitherto unnoticed, factor behind both trends is a decline in the share of nonparticipants who are at the margin of participation. A lower share of marginal nonparticipants implies a lower unemployment rate, because marginal nonparticipants enter the labor force mostly through unemployment, while other nonparticipants enter the labor force mostly through employment.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.upf.edu/docs/papers/downloads/1397.pdf
File Function: Whole Paper
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1397.

as in new window
Length:
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:upf:upfgen:1397

Contact details of provider:
Web page: http://www.econ.upf.edu/

Related research

Keywords: marginal participant; want a job; stock-flow decomposition.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Robert Shimer, 2007. "Reassessing the Ins and Outs of Unemployment," NBER Working Papers 13421, National Bureau of Economic Research, Inc.
  2. Erceg, Christopher & Levin, Andrew, 2013. "Labor Force Participation and Monetary Policy in the Wake of the Great Recession," CEPR Discussion Papers 9668, C.E.P.R. Discussion Papers.
  3. Stephen R. G. Jones & W. Craig Riddell, 1999. "The Measurement of Unemployment: An Empirical Approach," Econometrica, Econometric Society, vol. 67(1), pages 147-162, January.
  4. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(8), pages iv-vi, August.
  5. Kim B. Clark & Lawrence H. Summers, 1979. "Labor Market Dynamics and Unemployemnt: A Reconsideration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 10(1), pages 13-72.
  6. Daniel Aaronson & Jonathan Davis & Luojia Hu, 2012. "Explaining the decline in the U.S. labor force participation rate," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Mar.
  7. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(5), pages iv-vi, May.
  8. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(12), pages iv-vi, December.
  9. Petrongolo, Barbara & Pissarides, Christopher, 2008. "The Ins and Outs of European Unemployment," CEPR Discussion Papers 6681, C.E.P.R. Discussion Papers.
  10. Poterba, James M & Summers, Lawrence H, 1986. "Reporting Errors and Labor Market Dynamics," Econometrica, Econometric Society, vol. 54(6), pages 1319-38, November.
  11. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(3), pages iv-vi, March.
  12. Julie L. Hotchkiss & M. Melinda Pitts & Fernando Rios-Avila, 2012. "A closer look at nonparticipants during and after the Great Recession," Working Paper 2012-10, Federal Reserve Bank of Atlanta.
  13. Lawrence H. Summers, 1986. "Why is the Unemployment Rate So Very High near Full Employment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(2), pages 339-396.
  14. Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2007. "Technology—Policy Interaction in Frictional Labour-Markets," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1089-1124.
  15. Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January.
  16. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(4), pages iv-vii, April.
  17. Dale T. Mortensen & Christopher A. Pissarides, 1998. "Technological Progress, Job Creation and Job Destruction," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(4), pages 733-753, October.
  18. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(10), pages iv-vi, October.
  19. Christopher L. Smith, 2012. "The Impact of Low-Skilled Immigration on the Youth Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 30(1), pages 55 - 89.
  20. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(1), pages viii-x, January.
  21. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(7), pages iv-vii, July.
  22. Robert Shimer, 2001. "The Impact Of Young Workers On The Aggregate Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 969-1007, August.
  23. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(11), pages iv-vi, November.
  24. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(2), pages iv-vi, February.
  25. Willem Van Zandweghe, 2012. "Interpreting the recent decline in labor force participation," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 5-34.
  26. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
  27. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(6), pages iv-vi, June.
  28. anonymous, 2009. "Management Insights," Management Science, INFORMS, vol. 55(9), pages iv-vi, September.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The role of marginal non-participants in the labor force
    by Economic Logician in Economic Logic on 2013-11-28 15:20:00

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:1397. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.